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Securitas: Aviation security in the United States

19 November 2001 11:00

- All passenger screening, including the work that is currently carried out by private security companies, is being taken over by a federal authority. The transition period is one year.

- Private security companies will be kept at five airports in order to pass on experience of how they can develop and improve the airport security industry under the new federal directions.

- From 2005, private security companies may once again be used for passenger screening.

- After the transition period, companies that carry out passenger screening must be U.S. owned and controlled. This is not defined in more detail.

The decision has the following consequences for Securitas' subsidiary, Globe Aviation Services Corporation (Globe):

- Of Globe's sales of approximately MUSD 65, approximately MUSD 50 will be affected by the decision. These operations will gradually be transferred to the federal authorities during the coming year.

- During 2001 to date, profitability for Globe has been break-even. The gradual wind-down of operations is not expected to have a negative effect on profitability for the Group.

In relation to liability for events of September 11, contrary to its decision of September 21, Congress has removed the cap for maximum liability for damages for screening companies that limited responsibility to the amount of the respective companies' insurance cover.

For Globe, the following remains valid:

- All investigations into events of September 11 continue to indicate that Globe has been in any way negligent in its actions, or is otherwise at fault in any other way for the events.

- Globe's present contracts with its customers give Globe the right to transfer potential liability claims to the customer.

- Globe is a separate operation and is run as a separate legal entity with its own insurance cover. Any potential outstanding liability for damages is therefore limited to Globe's own ability to pay and its insurance cover.

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